- Published January 15, 2021
The transitional period for the United Kingdom (UK) to exit the European Union (EU) came to an end on 31st December 2020. As a result, a number of European regulators have issued rules setting out their run-off expectations for UK insurers who have entered into insurance contracts during the transitional window, for risks situated within the European Economic Area (EEA).
Our approach to servicing existing EEA policies is based on protecting the interests of all policyholders. Convex Insurance UK Limited is working to ensure it has a fully regulated insurance solution in place within the EEA to write EEA exposed business long term. Until then, policies with EEA exposure will need to be run-off in line with the requirements as specified by each EEA member state. The run-off provisions apply to contracts of insurance which were written under the EU’s freedom of services principle. Please see below for country specific rules relating to the servicing of existing EEA policies.
In accordance with the ACPR order dated 22 December 2020, Convex Insurance UK Limited will continue to service contracts in good faith, including the payment of valid claims. Convex Insurance UK Limited can no longer renew, extend, or endorse the contract, incept new business and accept new premium payments (except for the payment of premiums provided for in the contract and when Convex has action to demand payment).
In accordance with Article 22 of the Law Decree issued on 31st December by the Italian Government, Convex Insurance UK Limited may no longer write new business or renew existing contracts. Convex Insurance UK Limited will continue to ensure the regular execution of existing insurance contracts, guaranteeing the fulfilment of contractual obligations, including the management of claims, payments, surrenders and withdrawals.